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DAWOOD CAPITAL MANAGEMENT LIMITED
TREASURE CHEST - DECEMBER 2011
Economic Outlook Federal Finance Minister gave hope that government will be able to collect the reve-nue target of Rs 1.9 trillion at the end of financial year 2011-12. Pakistan Automotive Manufactures Association said that was some improvement in the auto sales figures in comparison to the last year. Foreign remittances and exports are on the increas-ing trend. According to Federal Bureau of Statistics the trade deficit during July-November 2011 widened by 36.73%. A currency swap agreement (CSA) has been signed between the central banks of Pakistan and China, the first in the history of the two nations. The most disturbing thing for the government and for the public was the gas crisis which seems to continue in the comings months as well. CNG sta-tions were closed because of supply problems causing trouble to the general public. The Minister for petroleum said that there is going to be much more severe problem in the month of January. The government has decided to increase gas tariff, for different consumers, from 13.98% to 207% from January 1, 2012. According to SBP, liquid foreign exchange reserves as on December 23, 2011 stood at $16.769.
Stock Market Review: Throughout the month the volume traded was very thin. The market remained neg-ative after the news emerged that President Asif Ali Zardari flown to UAE for medical treatment. Rumors immediately started to circulate that the president was all set to resign and a political reshuffle was on the cards, creating panic at the bourses. The other major news came from the fertilizer sector, where gas supply was suspended by the Sui Northern Gas Pipelines Limited (SNGPL). Outflow of foreign funds was also observed. Things started to settle down a bit after President returned back to the country though volume still remained very thin. Another positive development was a possible relaxation on the Capital Gains Tax (CGT) front as the KSE proposed collec-tion of CGT under the presumptive tax regime for individual investors.
Fixed Income / Money Market Review: During the mid of the month The Ministry of Finance rejected all bids for the sale of 3, 6 & 12 months GoP Market Treasury Bills (MTBs). Very thin participation was wit-nessed in the auction of MTBs, conducted by SBP. While the month was ending SBP in its reverse repo open market operation in treasury bills and Pakistan Investment Bond for four days injected Rs 22.3 billion and later on a further injection Rs 174.95 billion on December 30, 2011.
Disclaimer: This publication is for informational purposes only and nothing herein should be construed as a solicitation, recommendation or an offer to buy or sell any fund. All investments in mutual funds are subject to market risks. The NAV based prices of units and any dividends/returns thereon are dependant on forces and factors affecting the capital markets. These may go up or down based on market conditions. Past performance is not necessarily indicative of future results.
PREMIER SAVINGS PLANS FOR INDIVIDUAL INVESTORS FIND US ON
STOCK MARKETS STATISTICS
PAKISTAN ECONOMIC UPDATES
Tara Uzra Dawood Chief Investment Officer
Syed Kabiruddin M ember
M uhammad Abbas Fund M anager Fixed Income
M uhammad Aslam Assistant Fund M anager Equity
Zeeshan Swalaheen Research Associate
INVESTMENT COMMITTEE
Indices D ec-11 N o v-11 R eturn A vg. Vo l. A vg. Val. D ec-11 N o v-11
KSE- 10 0 11,347.66 11,868.88 -4.39% 33.67 1.72 A vg. V o l. 41.55 M 45.04 M
KSE- 3 0 10,179.03 11,243.40 -9.47% 20.49 1.55 M kt . C ap . 2.95 T 3.00 T
KM I- 3 0 20,137.71 22,166.78 -9.15% 14.17 1.08 FIPI $ (24.92) M $ (4.19) M
A ll- Shares 7,856.82 8,215.84 -4.37% 41.55 1.76 6 M KIB OR 11.98% 11.91%
5B Lakson Square Building No. 1, Sarwar
Shaheed Road, Karachi-74200, Pakistan
Tel: (92 21) 35621001-6 Fax: (92 21) 35621010
Email: dcm@edawood.com
URL: www.edawood.com
DAWOOD CAPITAL MANAGEMENT LIMITED
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FUND STATISTICS PERFORMANCE STATISTICS
DETAILS OF NON COMPLIANT INVESTMENTS
DIF (DMMF) TOP TEN DEBT SECURITIES FUND MANAGER’S COMMENTS
During the month, debt pricing were down at MUFAP and also few defaults were occurred which caused provisions and suspension of income according to SECP pre-mentioned criteria. We are quite confident that in the new year, these defaults will be restructured and prices will improve which will improve the return of your fund as well. DIF is still a goldmine for those who want to earn capital gains on investments.
Name of Fund Dawood Income Fund
(Formerly Dawood Money Market Fund)
Structure Open End
Industry Category Fixed Income
Benchmark Avg. 6 Month KIBOR
Trustee & Custodian MCB Financial Services Limited
Auditor Ernst & Young Ford Rhodes
Registrar Gangjees Registrar Services (Pvt.) Ltd.
Legal Advisor Bawaney & Partners
Launch Date 19-May-2003
Listing KSE
Duration Perpetual
Management Fee 1.00% per annum
Sales Load 1% Front End
Pricing Mechanism Forward
Leverage Nil
Risk Profile Medium
AMC Rating AM3-
Stability Rating A- (f)
Net Assets PKR 450.25 Mn
NAV PKR 77.2111
Wt. Avg. Time To Maturity 0.80 Years
Standard Deviation 0.41%
Sharpe Ratio (0.18)
Information Ratio (0.25)
VAMI 1.06
RETURNS Dec-2011 Nov-2011
DIF (DMMF) 3.09% 9.79%
Benchmark 11.98% 11.91%
Alpha -8.89% -2.12%
1 Month 3 Months 6 Months YTD
3.09% 9.48% 12.18% 12.18%
HISTORIC RETURNS
INVESTMENT OBJECTIVE
To preserve the investor’s capital w hile providing a return
greater than that offered by other investments of similar risk
profile through investments in a portfolio of money market
instruments.
ASSET MIX Dec-2011 Nov-2011
Placements 5.89% 5.57%
TFC / Sukuk 21.85% 21.18%
T-Bills 65.58% 67.80%
Cash 6.00% 3.43%
Others 0.68% 2.02%
CREDIT QUALITY Dec-2011 Nov-2011
AAA 65.58% 67.80%
A- 4.96% 4.66%
BBB 5.27% 4.90%
< BBB 14.22% 13.37%
Unrated 3.28% 3.82%
Name of Investment Type Value Before
Provision
Provision
(if any)
Value After
Provision
% Net
Assets
% Gross
Assets
Escort Investment Bank Limited TFC 552,570 - 552,570 0.12% 0.12%
Pace Pakistan Limited TFC 9,403,856 - 9,403,856 2.09% 2.07%
Dewan Cement Limited TFC 150,000,000 150,000,000 - 0.00% 0.00%
Invest Capital and Investment Bank Limited TFC 22,500,000 - 22,500,000 5.00% 4.95%
Invest Capital and Investment Bank Limited TFC 15,569,441 15,569,441 - 0.00% 0.00%
Eden Housing Limited SUKUK 9,898,874 4,454,493 5,444,381 1.21% 1.20%
New Allied Electronics Industries Limited TFC 25,433,190 25,433,190 - 0.00% 0.00%
Kohat Cement Company Limited SUKUK 14,938,720 - 14,938,720 3.32% 3.28%
Invest Capital Investment Bank Limited COM 36,750,000 9,950,795 26,799,205 5.95% 5.89%
Trust Investment Bank Limited COI 8,041,359 8,041,359 - 0.00% 0.00%
TOTAL 293,088,010 213,449,279 79,638,732 17.69% 17.51%
INVESTEE COMPANY TYPE %
Invest Capital Investment Bank Limited COM 5.95%
Trust Investment Bank Limited TFC 5.33%
Avari Hotels (Pvt) Limited TFC 5.02%
Invest Capital and Investment Bank Limited TFC 5.00%
Kohat Cement Company Limited SUKUK 3.32%
Pace Pakistan Limited TFC 2.09%
Eden Housing Limited SUKUK 1.21%
Escort Investment Bank Limited TFC 0.12%
TOTAL 28.03%
DAWOOD INCOME FUND
TREASURE CHEST - DECEMBER 2011
(FORMERLY DAWOOD MONEY MARKET FUND)
DAWOOD ISLAMIC FUND TREASURE CHEST - DECEMBER 2011
FUND STATISTICS PERFORMANCE STATISTICS
DETAILS OF NON COMPLIANT INVESTMENTS
DIF (DMMF) TOP TEN SECURITIES FUND MANAGER’S COMMENTS
During the month your fund was up by 0.11% as compared to its benchmark which was down by 0.90%. Thus DIF out-performed by 1.01%. Despite volatile equity markets and worst geo-political conditions, Fund held blue chip scripts in the portfolio and as we are hoping upward trend in the year to come, DIF will be the best choice of investment.
Name of Fund Dawood Islamic Fund
Structure Open End
Industry Category Islamic Asset Allocation
Benchmark 25% KMI-30 + 75% Savings Rate
Shariah Advisors Prof. Mufti Munib-ur-Rehman
Mufti Syed Sabir Hussain
Mufti Zahid Siraj
Trustee & Custodian CDC Pakistan Limited
Auditor Ernst & Young Ford Rhodes
Registrar Gangjees Registrar Services (Pvt.) Ltd.
Legal Advisor Bawaney & Partners
Launch Date 14-Jul-2007
Listing KSE
Duration Perpetual
Management Fee 1.50% per annum
Sales Load 1.50% Front End
Pricing Mechanism Forward
Risk Profile Medium
AMC Rating AM3-
Net Assets PKR 336.74 Mn
NAV PKR 104.4637
Wt. Avg. Time To Maturity 1.38 Years
Standard Deviation 0.55%
Sharpe Ratio (1.13)
Sortino Ratio (2.94)
Information Ratio 0.26
VAMI 1.03
1 Month 3 Months 6 Months YTD
0.11% 0.55% 2.66% 2.66%
HISTORICAL RETURNS
ASSET MIX Dec-2011 Nov-2011
Musharika 7.85% 8.01%
Sukuk 24.89% 25.72%
GoP Ijara 29.73% 29.55%
Cash & Eq. 20.59% 19.88%
Equities 11.76% 11.65%
Others 5.18% 5.18%
CREDIT QUALITY Dec-2011 Nov-2011
AAA 29.73% 29.55%
AA 7.44% 7.33%
A 4.62% 4.67%
< A- 17.24% 17.40%
Unrated 3.46% 4.34%
EQUITY ALLOCATION Dec-2011 Nov-2011
Oil & Gas 7.13% 7.23%
Pharma & Bio Tech 1.97% 2.01%
Cement 1.07% 0.69%Personal Goods 0.77% 0.74%
Electricity 0.75% 0.81%
Chemicals 0.07% 0.18%
Investee Company Type %
Gop Ijarah SUKUK 30.13%
Maple Leaf Cement Factory Limited SUKUK 9.12%
Invest Capital Investment Bank Ltd. COM 7.96%
Engro Fertilizer Limited SUKUK 7.54%
Pak Elektron Limited SUKUK 4.68%
Kohat Cement Company Limited SUKUK 3.50%
Maple Leaf Cement Factory Limited SUKUK 0.38%
TOTAL 63.31%
Name of Investment Type Value Before
Provision
Provision
(if any)
Value After
Provision
% of Net
Assets
% Gross
Assets
M aple Leaf Cement Factory Limited SUKUK 48,104,993 17,380,171 30,724,822 9.12% 9.00%
M aple Leaf Cement Factory Limited SUKUK 1,840,000 544,531 1,295,469 0.38% 0.38%
New Allied Electronics Industries Limited SUKUK 5,027,500 5,027,500 - 0.00% 0.00%
Kohat Cement Company Limited SUKUK 11,790,625 - 11,790,625 3.50% 3.46%
Invest Capital Investment Bank Limited COM 36,750,000 9,950,794 26,799,206 7.96% 7.85%
TOTAL 103,513,118 32,902,996 70,610,122 20.97% 20.69%
Returns Dec-2011 Nov-2011
DIF-S 0.11% 0.29%
Benchmark -0.90% -0.82%
Alpha 1.01% 1.11%
FIRST DAWOOD MUTUAL FUND
TREASURE CHEST - DECEMBER 2011
FUND STATISTICS PERFORMANCE STATISTICS
DETAILS OF NON COMPLIANT INVESTMENTS
FDMF TOP TEN DEBT SECURITIES FUND MANAGER’S COMMENTS
During the month, FDMF down by 1.36% as compared to its bench-mark which was down by 0.30%. Thus FDMF was underperformed by 1.06%. Stock markets were not performing at par and a very lacklus-ter trading witnessed during the period under review due to the po-litical instability and foreign outflows were observed due to year end holidays. We are hopeful that these will recover in the year to come.
Name of Fund First Dawood Mutual Fund
Structure Closed End
Industry Category Balanced
Benchmark 50% KSE-100 + 50% Avg. 6 M KIBOR
Trustee & Custodian CDC Pakistan Limited
Auditor Ernst & Young Ford Rhodes
Registrar FD Registrar Services Pvt. Limited
Legal Advisor Bawaney & Partners
Launch Date 23-Mar-2005
Listing KSE
Management Fee 2.00% per annum
Pricing Mechanism Forward
Risk Profile Medium - High
AMC Rating AM3-
Net Assets PKR 505.52 M
NAV PKR 8.70
Wt. Avg. Time To Maturity 0.84 Years
Standard Deviation 2.70%
Sharpe Ratio (0.68)
Sortino Ratio (0.85)
Information Ratio (0.66)
VAMI 0.95
RETURNS Dec-2011 Nov-2011
FDMF -1.36% -2.97%
Benchmark -0.30% -0.92%
Alpha -1.06% -2.05%
1 Month 3 Months 6 Months YTD
-1.36% 0.56% -4.65% -4.65%
HISTORICAL RETURNS
INVESTMENT OBJECTIVE
To preserve the investor’s capital w hile providing a return
greater than that offered by other investments of similar risk
profile through investments in a mixed portfolio of money market,
f ixed income and stocks.
ASSET MIX Dec-2011 Nov-2011
Equities 36.89% 38.91%
TFC / Sukuk 20.67% 20.97%
T-Bills 38.55% 32.99%
Cash & Eq. 2.81% 5.98%
Others 1.08% 1.16%
CREDIT QUALITY Dec-2011 Nov-2011
AAA 38.55% 32.99%
A- 0.40% 0.40%
BBB 2.35% 2.32%